Solar Panel Cost Guide in Owatonna, MN (2023 Update)
- Owatonna Solar Installation Cost: $14,234
- 25-Year Savings: $20,853
- Payback Period: 10.1 Years
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Updated May 04, 2023
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Average Cost of Solar Panels in Owatonna
Find out what the average cost of solar panels are in Owatonna.
The national average cost of solar panels is $2.66 per watt, but in Owatonna it's 2.84 per watt. The average Owatonna homeowner needs a 7.2-kilowatt system, which would cost about $14,234 with the federal tax credit, or $20,355 before the 30% tax credit is applied.
The prices above are just estimates to give you an idea of how much a solar panel system could cost. The actual cost of installing solar panels can vary quite a bit depending on multiple factors, such as what size system you need, your energy usage and what installation company you go with. But, after you've paid the upfront cost of installation, the savings for most homeowners is typically rewarding, with a net average savings of about $19,000 over 20 years on utility bills.
To get a free quote from a top solar installation company in Owatonna, you can click the button below.
Solar savings over time in Owatonna
| Year | Return on Investment |
|---|---|
| 1 years | $-12,831 |
| 3 years | $-10,024 |
| 5 years | $-7,217 |
| 7 years | $-4,410 |
| 9 years | $-1,603 |
| 11 years | $1,204 |
| 13 years | $4,011 |
| 15 years | $6,818 |
| 17 years | $9,625 |
| 19 years | $12,432 |
| 21 years | $15,239 |
| 23 years | $18,046 |
| 25 years | $20,853 |
Top Solar Installers in Owatonna
Many homeowners choose to use a solar installation company since installing solar panels on your own can be a labor-intensive endeavor. Some solar companies, particularly local ones, can help you make the most of incentives in Owatonna, optimizing your ROI.
If you're on the hunt for a solar company in Owatonna, we've compiled a list of our top suggestions here:
Best Social Impact
Palmetto Solar
- Expansive service area
- Makes charitable contributions
- Certified B Corp
- No leases or PPAs
- Quality of installation may vary by location
Best Technology
Tesla Energy
- Price-match guarantee
- Sleek, efficient, and durable solar panels
- Best solar battery on the market
- Some reported issues with customer service
- Customer service varies by local dealer
See all of the solar companies in Owatonna
Factors that Affect Solar Panel Costs in Owatonna
For many Owatonna homeowners, the decision to install solar panels depends on cost. However, the range of solar installation costs can be quite wide in Owatonna, with typical prices between $20,000 to $40,000. There are several factors that significantly influence the price you'll pay, which we'll go over below.
Solar Equipment
When it comes to estimating the price of a solar system in Owatonna, one of the most important factors is the size of the system you need. Solar systems are sized by kilowatts (kW) and are largely based on your home's energy usage, which you can figure out by looking at past energy bills. Your total cost can increase by about $2,840 for each additional kilowatt you need. The kind of solar equipment you choose can bring your price up or down by thousands or even tens of thousands of dollars. If you choose the most efficient solar panel brands, you'll end up paying more upfront than if you opted for the most affordable panels. However, more efficient panels could save you more over time on your energy bills. In addition, extra products, such as solar batteries, can bump up your total well above the Owatonna average.
Solar Financing Terms
Solar panels can save you money on utility bills over time, but they can also be a big investment. That's why many Owatonna homeowners decide to finance their solar panel systems to offset upfront costs. You'll have to consider the long-term cost of loans, including the total interest you'll pay over the length of the loan. If you're only able to get a high-interest loan, then your total can be hundreds or even thousands of dollars above the equipment and labor cost. Making a larger down payment or finding a solar loan with a low interest rate could reduce your costs considerably.
Solar Panel Installation Company
Lastly, the company you choose to install your solar panel system can influence the cost. Owatonna's solar companies all have different labor costs and add varying upcharges to equipment. The size of the company sometimes plays the most significant role in your costs. Larger national companies, like SunPro and Sunrun, often have lower prices because they have greater resources and bulk pricing. Smaller local companies might be more costly, but they can sometimes have better customer service and more customization options, and the occasional sale or discount can bring their pricing lower to compete with bigger names.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $2.95 | $12,405 | $16,983 | 10.6 years |
| 8 kW | $2.90 | $16,222 | $22,962 | 10.3 years |
| 10 kW | $2.84 | $19,880 | $29,100 | 10.1 years |
| 12 kW | $2.78 | $23,379 | $35,397 | 9.9 years |
| 14 kW | $2.73 | $26,719 | $41,854 | 9.7 years |
| 16 kW | $2.67 | $29,900 | $48,469 | 9.5 years |
| 18 kW | $2.61 | $32,921 | $55,243 | 9.3 years |
| 20 kW | $2.56 | $35,784 | $62,177 | 9.1 years |
How to Save on Solar Panels
Since the type of solar panels and the installation company you choose significantly affects your costs and your system's efficiency, production, and durability, it's important to pick the right ones for you. Here are some things to keep in mind to help with your decision:
- Reputation: Your solar installer should have a sound reputation as a company and have verifiable expertise in the field. Two ways to check this are to look for whether a company has technicians certified by the North American Board of Certified Energy Practitioners (NABCEP) and if it has good reviews from previous customers.
- Warranty: A quality company stands out from other companies by offering the gold standard warranty — a 25-year, all-inclusive warranty covering parts, labor and performance.
- Contract: Before signing a contract with a solar installer, make sure you read it through completely so you understand the terms. Also, ask questions if you aren't sure about some of the terms, such as what to do if a part breaks or malfunctions and what services you can expect from them.
- Solar Panel Brands: The kind of solar panel you want to get plays a role in which company you should opt for, since different companies offer different panels.
Best Social Impact
Palmetto Solar
- Expansive service area
- Makes charitable contributions
- Certified B Corp
- No leases or PPAs
- Quality of installation may vary by location
Best Technology
Tesla Energy
- Price-match guarantee
- Sleek, efficient, and durable solar panels
- Best solar battery on the market
- Some reported issues with customer service
- Customer service varies by local dealer
EcoWatch's Owatonna, MN Solar Cost FAQs
How much does it cost to install solar panels in Owatonna?
The average cost of solar panels in Owatonna is about $14,200 for a 5-kW system and $28,400 for a 10-kW system before the ITC, but the real cost will depend on things like the type of solar panels you want, what size system you need and how much energy you use.
Is it better to lease or buy solar panels in Owatonna?
Leasing solar panels can be an appealing choice, as it usually comes with low or $0 upfront payments. The downside is that you won't be able to save as much. If you lease, you don't own the system, so you can't claim any incentives and your home value won't increase. Buying solar panels is a better option if you want to get the most savings.
How will solar panels impact the value of my home?
Solar panels can increase your home value considerably as long as you buy or finance your panels and don't opt for a solar lease or power purchase agreement (PPA). According to research done by Zillow, the average home value increases by about 4.1% after installing solar panels."
How many solar panels do I need to power my home?
To figure out how many solar panels you need, you should find out how much energy your home uses and how much sunlight your home gets. For a general estimate, however, since each panel can typically produce about 250 to 400 watt-hours per hour, the average home will need 20 to 35 panels.
Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.
Company research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.